NOVA to push proposed 7 cent/lb US PE hike to June

HOUSTON (ICIS)--North American polyethylene (PE) producer NOVA Chemicals said it will push a proposed 7 cent/lb ($154/tonne, €117/tonne) US increase from 1 May to 1 June, sources said on Wednesday.

"We believe that the current polyethylene market conditions are not conducive to support a price increase at this time," the company said in a customer letter obtained by ICIS.

The announcement comes less than one week after producer LyondellBasell informed its customers in a 20 April letter that it would split the 7 cent/lb increase with 4 cents/lb in May and 3 cents/lb in June.

The proposed 7 cent/b increase was originally announced in January, but had been pushed recently to April and then to May.

Market participants said the announcements indicate weakness in the market and are an effort by producers to keep the market talking about an increase, rather than a decrease.

However, most buyers say they expect prices to begin to fall in May, pointing to lower feedstock costs and continued weak demand in domestic and export markets.

Current prices for linear low density polyethylene (LLDPE) butene were at 77-80 cents/lb DEL (delivered); low density polyethylene (LDPE) film prices were at 86-88 cents/lb DEL; and high density polyethylene (HDPE) blow moulding prices were at 75-77 cents/lb DEL, for small volume buyers, as assessed by ICIS.